Competitive Dialogue Procurement Law

The competitive dialogue under EU procurement law enables the joint development of solutions for particularly complex contracts – conditions, process and national rules.

Definition: The competitive dialogue is a special form of award procedure under EU procurement law in which, for particularly complex contracts, public contracting authorities work out the means appropriate to meeting their needs jointly with selected candidates in a structured dialogue before bidders submit tenders on that basis.

Last updated: January 2026 · Legal basis: Art. 30 Directive 2014/24/EU, BVergG 2018 §§ 159 et seq. (AT), § 18 VgV (DE)

What is the competitive dialogue?

The competitive dialogue is a three-phase procurement procedure for particularly complex contracts in which the contracting authority initially describes only its needs and objectives, then discusses all suitable solutions in an open dialogue with selected candidates, and only on this basis invites binding tenders. It was introduced by the EU procurement reform of 2004 and carried forward in Directive 2014/24/EU at Art. 30. The procedure combines elements of the negotiated procedure with a structured dialogue process and is aimed at situations in which the contracting authority knows its need but not the optimal solution.

Purpose and significance

The competitive dialogue is intended to make the market knowledge of private undertakings usable for the development of public solutions without the contracting authority having to be in a position to prepare complete technical specifications in advance. For large public infrastructure projects, complex IT systems or innovative service models, the contracting authority often lacks the technical detail to formulate a definitive specification. Dialogue with the market provides a remedy here without abandoning the principle of competition.

The procedure is particularly relevant for public-private partnerships (PPP), complex infrastructure projects and large IT projects where several technical approaches are possible.

Conditions for admissibility

The competitive dialogue is only admissible for particularly complex contracts where the contracting authority is objectively not able to determine the technical means to meet its needs or to specify the legal and financial conditions of a project. Art. 30(1) Directive 2014/24/EU cumulatively lists the following requirements:

The contract is particularly complex
The application of the open or restricted procedure would not yield satisfactory results
The contracting authority cannot fully determine in advance the technical means or the legal and financial conditions

Particular complexity exists in particular where the optimal technical, financial or legal solution is not objectively identifiable from the outset – such as in PPP projects, integrated transport solutions, or digital state infrastructure. The conditions for admissibility must be interpreted narrowly; the burden of proof lies with the contracting authority.

Three-phase procedure

The competitive dialogue is divided into three clearly separated phases: the notice and eligibility phase, the dialogue phase proper, and the tender phase.

Phase 1: Notice and eligibility check

The contracting authority publishes a contract notice as a TED notice in the Supplement to the Official Journal of the EU. In the notice, it describes its need and the functional and performance-based requirements. Interested undertakings submit requests to participate; the contracting authority reviews their eligibility and invites at least three suitable candidates to take part in the dialogue.

Phase 2: Dialogue phase

In the dialogue, the contracting authority discusses all aspects of the contract with the selected candidates in order to identify the best solution. The following rules apply:

The dialogue may be conducted in successive phases in order to reduce the number of solutions
All information must be made equally accessible to all participants
Confidential information may not be passed on without the consent of the respective participant
Solution proposals submitted by participants must be treated as confidential; arrangements on fees or premiums are possible

The contracting authority ends the dialogue once it is in a position to identify the solution that meets its needs.

Phase 3: Tender phase

On the basis of the solution developed in the dialogue, all remaining participants are invited to submit tenders. The tenders received are reviewed for completeness and eligibility; negotiations for final adjustments are possible, but only within narrow limits, so as not to distort competition. The contract is awarded to the most economically advantageous tender.

Differences from other procedures

The competitive dialogue differs from the negotiated procedure in that at the outset there is no, even preliminary, technical specification and the dialogue is conducted openly until a satisfactory solution is found. In the negotiated procedure, by contrast, a set of tender documents already exists as the basis for negotiation. The competitive dialogue is therefore the most open of the regulated EU procurement procedures.

Legal basis

The European legal basis for the competitive dialogue is Art. 30 of Directive 2014/24/EU on public procurement. Further relevant sources:

Art. 29 Directive 2014/25/EU: corresponding rules for utilities contracting entities
Directive 89/665/EEC: legal protection in the context of the competitive dialogue
Recitals 42–44 of Directive 2014/24/EU: clarification of scope and procedural rules

National implementation

Austria (BVergG 2018)

In Austria, the competitive dialogue is regulated in §§ 159 et seq. BVergG 2018. Austrian law follows the structure of Directive 2014/24/EU largely unchanged. Particular features of the Austrian implementation:

The minimum number of candidates to be invited is generally three (§ 161(1) BVergG 2018)
The dialogue may be conducted in successive phases if this was announced in advance in the notice
Confidentiality agreements are possible for the dialogue phase
Premiums for participation in the competitive dialogue may be provided for in the notice (§ 164 BVergG 2018)

Germany (GWB / VgV / UVgO / VOB)

In Germany, the competitive dialogue is regulated in § 18 VgV for supply and service contracts above the EU thresholds. § 3a EU VOB/A contains corresponding rules for works. Essential features of the German implementation:

At least three suitable candidates must be invited (§ 18(4) VgV)
Successive dialogue phases must be announced in the notice
Confidentiality of solution proposals is strictly required
After the dialogue, participants may be invited to submit tenders and to provide limited clarifications
Fees or premiums for the dialogue phase must be stated in the notice

Distinction from the innovation partnership

The innovation partnership under Art. 31 Directive 2014/24/EU goes further still than the competitive dialogue: it serves not only to identify a solution but also to develop and subsequently acquire it. While the competitive dialogue seeks a solution available on or adaptable from the market, the innovation partnership covers cases in which the required solution does not yet exist and must first be created through research and development services. In Austria, the innovation partnership is regulated in § 165 BVergG 2018; in Germany in § 19 VgV.

Related terms

Negotiated procedure: award procedure with negotiations based on a preliminary specification
Innovation partnership: procedure for procurements with an upstream research and development phase
Open procedure: standard procedure with no limit on the number of bidders and no negotiation element
Technical specification: requirements for the subject of the contract, which in the competitive dialogue are developed only in the dialogue
TED notice: mandatory publication in the EU Supplement, the starting point of the procedure
PPP: public-private partnership, a typical application of the competitive dialogue

FAQ

When may the contracting authority choose the competitive dialogue? The competitive dialogue is admissible where the contract is objectively particularly complex and the contracting authority cannot fully determine in advance the technical means to meet its needs or the legal-financial conditions. The conditions for admissibility under Art. 30(1) Directive 2014/24/EU (§ 159 BVergG 2018; § 18 VgV) must be met.

How many candidates must be invited to the dialogue? At least three suitable candidates must be invited, provided that a sufficient number of qualified candidates is available.

Are solution proposals from participants confidential? Yes. The contracting authority may not pass on confidential information or solution proposals to other participants without the express consent of the participant concerned. Breaches give rise to challenges under procurement law.

May the contracting authority still negotiate tenders after the dialogue? Only within very narrow limits. After receipt of tenders, only clarifications and refinements are permissible; material changes to tenders or to the minimum requirements are excluded.

Does the competitive dialogue differ in the utilities sector? Essentially no. Directive 2014/25/EU for utilities contracting entities provides for a comparable instrument in Art. 29, but generally grants such entities somewhat more flexibility in the design of the procedure.

Last updated: January 2026 All information without warranty. For legally binding advice, please consult a law firm specialising in procurement law.